percentage point to arrange 2% to two and a quarter percent. the outlook for the u.s. economy remains favorable in this action is designed to support that outlook. it is intended to ensure against downside risk, we can global we re thinking of it as essentially in the nature of a midcycle adjustment to policy. bret: that s the fed chair explaining in a news conference, as they do, the effort to drop down interest rates for the first time in more than a decade and if you look at the chart, you can see where the little dip happened today. the market though when that announcement was made and how it was made did not like what they saw. take a look when that announcement was made with the dow today, the other indices taking a hit as well and the president didn t like it either. what the market wanted to have from jay powell and the federals or was that this was the beginning of a lengthy and aggressive rate cutting cycle which would keep pace with
other countries around the world. as usual, powell led us down. the markets certainly weren t thrilled at the quarter-point cut. many investors had expected a full half point reduction. but the dow really went into a nosedive, down near 500 points after jerome powell seemed to suggest it might be one and done as far as lowering interest rates. we re thinking of it as essentially in the nature of a midcycle adjustment to policy. the markets climbed part way back up the ladder after powell clarified that the fed wasn t rolling out more cuts as needed. if president trump wasn t worried solely about interest rates. the fed s program of so-called quantitative tightening was also on his radar. for them to have done quantitative tightening and also higher interest rates simultaneously, i think was a big mistake. we have the all-time high in the history of the stock market very i think i would have been 10,000 points higher and i think we would have been in the 4 for less gdp.